Synopsis
New Delhi, March 17 (NationPress) highlights the growing trend of neo banks and mid-sized banks establishing Global Capability Centres (GCCs) in India, indicating a shift in the BFSI sector that promises new opportunities and a significant role for India in global banking.Key Takeaways
- Neo banks and mid-sized banks are establishing GCCs in India.
- This trend marks a shift in the BFSI sector.
- The neo banking market is set to grow significantly.
- Bengaluru leads in leased office space for GCCs.
- GCCs account for 37% of the office market in top cities.
New Delhi, March 17 (NationPress) Neo banks and mid-sized banks are progressively establishing Global Capability Centres (GCCs) in India, taking cues from larger global banking institutions, as highlighted in a report.
This emerging trend marks a significant transformation in India’s banking, financial services, and insurance (BFSI) sector, indicating fresh opportunities for the industry within the nation.
Neo banks, which function exclusively online without the necessity for physical branches, are pivotal to this evolution, as noted in the report.
These digital-only banks frequently operate independently or collaborate with traditional banks to deliver innovative banking solutions.
The neo banking market is anticipated to experience substantial growth in the forthcoming years. As per a report by PwC, the neo-banking sector is expected to achieve a valuation of $395 billion by 2026, a remarkable increase from $19 billion in 2018.
This swift expansion reflects the growing global acceptance of digital banking services and the potential for India to emerge as a key hub for banking innovation and services.
As an increasing number of neo banks and mid-sized financial organizations establish their operations in India, the country's role in the global banking landscape is becoming increasingly significant.
However, according to a recent report by real estate consultancy Anarock, GCCs have leased over 52.88 million square feet of office space in the past two years - 2023 and 2024 - across these cities.
With the rapid expansion of GCCs in India, these centres now represent 37 percent of the office space market in the country’s top 7 cities.
The demand for office space from GCCs has been particularly robust in cities such as Bengaluru, Hyderabad, Chennai, and Pune.
Bengaluru leads with approximately 24 million square feet of office space leased, constituting nearly half (46 percent) of the total leasing in the top 7 cities.
Hyderabad follows with over 10 million square feet leased, accounting for about 19 percent of the total space leased by GCCs, as per the ANAROCK report.
